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Pricing Review - Bus. Foundations

Total questions: 12

Worksheet time: 9mins

Name
Class
Date
1.

____ is what you provide in trade for your client's money.

a)

list price

b)

margin

c)

markup

d)

value

2.

The amount added to your cost to calculate the selling price.

a)

margin

b)

markup

c)

cost of goods sold

d)

list price

3.

Cutting into your profits and charging an extremely low price to consumers is known as price gouging.

a)

True

b)

False

4.

Calculating a price by detemining your cost to produce it and adding a markup is known as (a)   -based pricing.

5.

The process of assigning prices to items you're selling is called __.

a)

overpricing

b)

pricing

c)

retailing

d)

listing

6.

Which of the following can have an impact on the final price charged to consumers? (Select all that apply.)

a)

your costs

b)

the competition

c)

the day of the week

d)

supply and demand

7.

The selling price minus the unit cost is known as ___ (the profit you make off each item).

a)

markup

b)

list price

c)

margin

d)

value

8.

Using psychological pricing techniques, which of the following prices is typically perceived as a value?

a)

$19.99

b)

$20

c)

$20.25

9.

If your cost is $3.00 and you plan to use a 100% markup, the markup amount is

a)

$6.00

b)

$2.00

c)

$3.00

d)

$1.50

10.

If your cost is $10 and the markup amount is $15 the selling price will be

a)

$5.00

b)

$150.00

c)

$35.00

d)

$25.00

11.

It cost you $2.50 to make a large cheese pizza, you sell a large cheese pizza for $12.00. What is your margin (in $) for the large cheese pizza?

a)

$14.50

b)

$2.50

c)

$9.50

d)

$15.00

12.

Which of the following expenses should your price cover? (Select all that apply.)

a)

rent

b)

taxes

c)

insurance

d)

cost of goods sold